Budget Proposal For Enter Years Here

budget Proposalforenter Years Here

Your Company Name your Company Name budget Proposal for enter Years Here. Your Company Name Your Company Name Budget Proposal for [enter years here] BUSN-278 [Term] Professor [name] DeVry University Table of Contents Section Title Subsection Title 1.0 Executive Summary 2.0 Sales Forecast 2.1 Sales Forecast 2.2 Methods and Assumptions 3.0 Capital Expenditure Budget 4.0 Investment Analysis 4.1 Cash Flows 4.2 NPV Analysis 4.3 Rate of Return Calculations 4.4 Payback Period Calculations 5.0 Pro Forma Financial Statements 5.1 Pro Forma Income Statement 5.2 Pro Forma Balance Sheet 5.3 Pro Forma Cash Budget 6.0 Works Cited 7.0 Appendices 7.1 Appendix 1: [description] 7.2 Appendix 2: [description] (Please put page numbers in the last column of the table of contents above, because they apply to your finished assignment. Do this after your project is complete. Also, remove this text and all text that is in italics in this template when finished your project.) (Also, please submit your Excel spreadsheet that shows your supporting calculations.)

1.0 Executive Summary

The first paragraph of this executive summary should give a brief description of the business to which this budget applies. Very briefly describe the products and services of this company, the geography or demographics of the customers it serves, and why people purchase the main product of this business. Much or all of this will be found in the business profile provided to you. Please use your own words, and please do not simply copy and paste the explanation in the course materials. Make assumptions if necessary. Also, provide a second paragraph that describes how the budget supports the company’s strategy. Finally, provide a third paragraph where you summarize the key points from your budget, including the planning horizon; the amount of up-front investment; the NPV, payback, and IRR of the project; and key figures from your income statement, cash budget, and balance sheet. Remember, this is not a thesis or introduction of what you will talk about—it contains the major, specific content of each section. The second and third paragraph should be written after you have completed all other sections of this template. As you complete sections of this template, please remove all italicized text in all sections of this template and replace it with your own or you will lose points!

2.0 Sales Forecast

Briefly introduce the sales forecast section.

2.1 Sales Forecast

Here you should include a simple table showing the years and the total sales for each year, along with a brief explanation of why sales are expected to rise, fall, change, or stay the same in certain years. Provide a brief explanation of the sales forecast, indicating why you expect sales to rise or fall during the planning horizon. Your explanation should be consistent with the trends and changes in sales found in your table.

Year 1 | Year 2 | Year 3 | Year 4 | Year 5Sales

2.2 Methods and Assumptions

Here you should describe how you arrived at your sales forecast in section 2.1. You should also provide any detailed calculations that led you to the sales forecast values. You should also summarize any research or figures that led you to make this sales forecast.

3.0 Capital Expenditure Budget

Here you should provide a screenshot of your capital expenditure budget, also listing the sources of data and assumptions that led to each line item in table format. Briefly describe the total investment and, if necessary, why major items are necessary to achieve the company’s strategy.

4.0 Investment Analysis

Briefly describe the NPV, IRR, accounting rate of return, and payback period for this analysis. Indicate the discount rate you used, and how you arrived at it.

4.1 Cash flows

Provide an Excel spreadsheet screenshot that shows how you arrive at the net cash flows for each period in your planning horizon and describe its highlights.

4.2 NPV Analysis

Provide a screenshot of your Excel NPV analysis here, and describe its highlights.

4.3 Rate of Return

Provide a screenshot of your IRR and accounting rate of return calculations here, and explain the highlights.

4.4 Payback Period

Provide a screenshot of your Excel calculation of the payback period for this venture.

5.0 Pro forma Financial Statements

Briefly introduce this section here.

5.1 Pro Forma Income Statement

Describe key figures and assumptions from the income statement, such as important profit or sales figures and their causes. Also, provide a screenshot of your pro forma income statement.

5.2 Pro Forma Balance Sheets

Provide a screenshot of your balance sheets, and describe key figures they contain.

5.3 Pro Forma Cash Budget

Provide a screenshot of the cash budget and describe the impact of the budget on cash balances.

6.0 Works Cited

List any sources you cited in the body of your report.

7.0 Appendices

NOTE: Start this section at the top of a new page. This section of the budget proposal is where you’ll attach all of the supporting materials that you’ve referenced in the preparation of your plan, and that is too detailed or extensive to be included in the body of the report. Use this page to separate the appendices from the text in the body of your report.

Make certain that you update the table of contents to include the title of each exhibit in the appendix and its page number.

7.1 Appendix 1: [put a description here]

7.2 Appendix 2: [put a description here]

7.3 Appendix 3: [put a description here]

Business Profile: Papa Geo’s — Restaurant

Vision: The vision of the entrepreneur is to create a single-location, sit-down Italian restaurant called Papa Geo’s. The goal is to generate an income of $40,000 per year, starting sometime in the second year of operation, as well as profit that is at least 2% of sales.

Strategy

  • Market Focus and Analysis: The restaurant targets middle- to lower-middle-class families with children, as well as adults and seniors, located in Orlando, Florida. The area within 15 minutes of the store has 10,000 families, mostly from lower to middle-class neighborhoods. The population growth in this area is approximately 6% annually for the next five years. The main competitors are fast-food chains like McDonald’s, Taco Bell, and Wendy’s, but no direct competition exists for a sit-down Italian restaurant.
  • Product: The restaurant offers Italian food served buffet-style, in an all-you-can-eat format, including a salad bar, pizza, various pastas with sauces, soup, desserts, and a self-serve soda bar. Additionally, there is a 500-square-foot gaming area with game machines for children.
  • Basis of Competition: Customers patronize Papa Geo’s because of quality Italian food at a low price ($7 meals with drinks), cleanliness, quick service, and entertainment options for children, such as gaming machines.

Start-Up Requirements*: Given Costs

  • Registration fees for an LLC in Florida
  • Renovation costs: $15,000
  • Business insurance: $1,000 per year
  • Other equipment and supplies as detailed in the description

Financial Assumptions:

  • Loan for initial start-up, repayable over 10 years at current small business loan rates
  • Owner's personal funds to operate until the business is self-sustaining
  • Credit card sales, with 2.5% fee
  • Trade credit of 30 days to suppliers
  • Inventories about 10% of next month’s sales
  • Average meal costs $4 in materials and labor
  • Equipment depreciated linearly over 5 years
  • Management and staff salaries, operational hours, and other assumptions as detailed

Any other necessary assumptions can be stated accordingly.

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